🔘 A loan is a sum of money borrowed from a lender that is expected to be repaid with interest over time.

🔘 Loans can be secured (backed by collateral) or unsecured (based on creditworthiness).

🔘 Common types include personal loans, home loans, auto loans, and student loans.

🔘 Interest rates vary depending on the type of loan, the borrower's credit score, and the lending institution.

🔘 Timely repayment helps build credit, while missed payments can damage credit scores and lead to penalties.

🔘 Loans are a critical financial tool, allowing individuals and businesses to access funds for education, housing, emergencies, or business expansion.